Iranian Business Expansion - Business Unit Opening in South Africa

The end of the international embargo on Iran has created an unprecedented opportunity for businesses. One example of the Trading Industry is the Iranian Business Unit opening in Cape Town.

In order to boost economic and trade ties between the two countries, Iran has opened a business unit in Cape Town, South Africa on Friday the 22nd of October 2016.

According to Tehran Times:

The opening ceremony, coincident with Iran’s National Exports Day (October 20), was reportedly attended by some officials from Iran Chamber of Commerce, Industry, Mine, and Agriculture (ICCIMA), some members of the South African parliament, and some private sector businessmen and entrepreneurs from both countries.

According to Mohsen Movahedi-Qomi, the Iranian ambassador to the African country, Iran and South Africa are set to improve their bilateral trade up to $2 billion by 2020 and the established business unit seeks to foster economic and commercial relations between the two countries, as well as those between Central Asian countries and South African ones.

As reported earlier this week, the value of Iran’s exports to South Africa rose by $10.4 million in the first six months of the current Iranian calendar year (March 20-Septemebr 21), a 93 percent increase year on year, Shana quoted an official with the Trade Promotion Organization of Iran as saying.

During the first six months of the current year, the country exported $21.4 million worth of goods to South Africa while the figure stood at $11 million in the same period last year, Farzad Piltan said.“Petrochemical products, petroleum, ceramic tiles, palm, power transformers, flooring and carpet, pistachio, industrial oils, powder and extract of licorice are among the main items sent to the region,” the official said.

“Iran’s potentials for exports to South Africa are way beyond the current level and we should take every measure to reach an ideal level” he added.

Further in his remarks, Piltan mentioned enhancement of banking relations, establishing shipping lines and direct flights as well as marketing of Iranian products as the necessary steps to be taken to boost the exports to South Africa.

The director general also noted that the two countries have put a $2 billion trade turnover by 2020 on the agenda, saying “hopefully in a near future Iranian companies active in various fields such as construction materials, food, petrochemical, pharmaceutical and medical equipment, etc. will have a significant presence in South Africa.”

On October 1, South African Deputy Foreign Minister Nomaindiya Mfeketo announced that her country is looking forward to have President Hassan Rouhani in Johannesburg.

Shanda Consult is specialised in consultancy regarding project-based investments and as a partner in bringing together investors and investment projects. Shanda Consult is advising on numerous investments in Iran, ranging from Energy/Telecom/ICT to retail, automotive and agriculture investments.

A particular strength is to establish Cyprus-based holding companies, as an added measure of security and tax optimisation.

We also have an active investment consultancy practise in Iran, and will be expanding the range of services there.

For a personalised consultation for your business investment needs in Iran, please feel free to contact us.